Magnolia Petroleum Plc De-risked Participation in 16 New Wells, US

 
TIDMMAGP 
 
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 
 
25 April 2017 
 
             Magnolia Petroleum Plc ('Magnolia' or 'the Company') 
 
       De-risked Participation in 16 New Wells in US Onshore Formations 
 
Magnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration and 
production company, is pleased to announce its participation in 16 new wells in 
the prolific SCOOP and STACK plays in Oklahoma. 
 
Magnolia recently participated in a new Continental Resources operated well, 
the Foree 1-18-7XH, which was drilled to the Woodford formation.  The operator 
reported initial production rates of 1,411 bopd and 3,900 mcf per day 
(equivalent to 2,061 boep/d).  Due to the excellent production rates and 
estimated reserves, an additional 13 increased density wells have also been 
proposed within this same unit. 
 
The second well on the unit, Houses Quarter 10-7-6XH, has already commenced 
drilling with the remaining 12 wells to be drilled back to back. Magnolia's 
share of the costs of drilling the initial Foree well was fully carried and 
thus no cost was borne by the Company.  Magnolia will fund its share of the 
costs of the 13 proposed increased density wells.  The estimated total 
aggregate cost payable by Magnolia to participate in these 13 wells has been 
estimated at US$45,000 however these infill wells have been substantially 
de-risked by the initial well, thereby minimising the associated exploration 
risk. 
 
In addition, the Company is participating in the drilling of three initial 
wells operated by Comanche Exploration Co. and Devon Energy for which 
Magnolia's share of the drilling costs will be fully carried.  Subject to the 
results of these initial wells, Magnolia will bear the costs of any increased 
density wells that may be proposed on these three spacing units.   Further 
updates will be provided once the wells have spud. 
 
Magnolia CEO, Rita Whittington said, "In the space of a few weeks we have 
announced our participation in 28 new wells, the majority of which are 
increased density wells in the prolific SCOOP and STACK plays.  These infill 
wells have been substantially de-risked by the drilling of initial wells on the 
relevant spacing units.  In our view, the free carry on a number of initial 
wells reported today is testament to the high standing of Magnolia's management 
team and their negotiating skills which  allows us to gain exposure to drilling 
activity without initially having to put any of the Company's capital at risk. 
I look forward to providing further updates on our progress, as we focus on 
proving up the reserves on our leases and generating value for our 
shareholders." 
 
The information contained within this announcement constitutes inside 
information stipulated under the Market Abuse Regulation (EU) No. 596/2014. 
 
                                 * * ENDS * * 
 
For further information on Magnolia Petroleum Plc visit 
www.magnoliapetroleum.com or contact the following: 
 
Rita Whittington           Magnolia Petroleum Plc       +01918449 8750 
 
Jo Turner / James Caithie  Cairn Financial Advisers     [phone] 
                           LLP 
 
Colin Rowbury              Cornhill Capital Limited     [phone] 
 
Lottie Brocklehurst        St Brides Partners Ltd       [phone] 
 
Frank Buhagiar             St Brides Partners           [phone] 
                           Ltd 
 
Notes 
 
Magnolia Petroleum Plc is an AIM quoted, US focused, oil and gas exploration 
and production company.  Its portfolio includes interests in 212 producing and 
non-producing assets, primarily located in the highly productive Bakken/Three 
Forks Sanish hydrocarbon formations in North Dakota as well as the oil rich 
Mississippi Lime and the substantial and proven Woodford and Hunton formations 
in Oklahoma. 
 
Summary of Wells 
 
Category                                                Number of wells 
 
Producing                                                           156 
 
Being drilled / completed                                            13 
 
Elected to participate / waiting to                                  43 
spud 
 
TOTAL                                                               212 
 
 
 
END 
 

(END) Dow Jones Newswires

April 25, 2017 02:06 ET (06:06 GMT)